Air France-KLM (OTCMKTS:AFLYY) Shares Gap Up - Here's Why

Key Points

• Air France-KLM shares gapped higher, opening at $1.14 versus a prior close of $1.075, before trading at $1.12 on light volume.
• Analyst sentiment remains mixed but leans neutral: three analysts rate the stock Buy and six rate it Hold, producing an overall “Hold” consensus. Kepler Capital Markets upgraded the shares from Reduce to Hold.
• The company exceeded quarterly expectations, reporting $0.07 in EPS versus a $0.05 estimate and $10.67 billion in revenue versus a $10.51 billion forecast. However, its high debt-to-equity ratio of 4.83 and liquidity ratios below 1 indicate financial leverage and liquidity risks.

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report)'s share price gapped up before the market opened on Monday. The stock had previously closed at $1.0750, but opened at $1.14. Air France-KLM shares last traded at $1.12, with a volume of 3,155 shares changing hands.

Analyst Ratings Changes

Several brokerages have weighed in on AFLYY. Citigroup reaffirmed a "neutral" rating on shares of Air France-KLM in a research note on Monday, August 3rd. Kepler Capital Markets raised Air France-KLM from a "reduce" rating to a "hold" rating in a research report on Tuesday, August 25th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Air France-KLM in a report on Wednesday, August 5th. Finally, Morgan Stanley restated an "overweight" rating on shares of Air France-KLM in a report on Wednesday, July 8th. Three analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold".

Air France-KLM Price Performance

The business's 50 day moving average is $1.25 and its two-hundred day moving average is $1.28. The firm has a market cap of $2.92 billion, a P/E ratio of 2.36 and a beta of 1.46. The company has a quick ratio of 0.61, a current ratio of 0.67 and a debt-to-equity ratio of 4.83.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The transportation company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. Air France-KLM had a net margin of 3.35% and a return on equity of 44.05%. The business had revenue of $10.67 billion during the quarter, compared to analyst estimates of $10.51 billion. As a group, analysts anticipate that Air France-KLM SA will post 0.39 earnings per share for the current year.

About Air France-KLM

Air France-KLM is a global airline group formed in 2004 through the merger of Air France and KLM Royal Dutch Airlines. The group operates under the Air France and KLM brands, which retain their own identities, operating certificates and hubs. Air France is based primarily at Paris-Charles de Gaulle and Paris-Orly airports, while KLM is centered at Amsterdam Airport Schiphol.

The company provides scheduled passenger air transportation on short-, medium- and long-haul routes serving destinations across Europe, North America, Latin America, Asia, Africa and the Middle East.

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